ADVERTISEMENT
Nigeria was excluded from the OPEC oil cut deal again, and here is why
The country's oil production is still below the agreed 1.8 million bpd output benchmark set by OPEC.
This is one of the outcomes of the Joint Ministerial Monitoring Committee (JMMC) meeting of OPEC and Non-OPEC Countries held in Vienna, Austria on Friday, September 22, 2017.
Nigeria’s Oil Minister, Dr Ibe Kachikwu while explaining the reasons for this decision stated that the country’s oil production is below the agreed cap.
“The average is about 1.69 million bpd and it is getting better by the day. We have actually joined, but the reality is the cap we agreed on is 1.8 million bpd and as long as we are producing below that, we are already in it,” Dr Ibe Kachikwu told reporters in Vienna.
ADVERTISEMENT
Bombing of oil installations by Niger Delta militants in the early part of the year was identified main factor hampering oil production level in the country. As many oil companies declared 'force majure' to reduce operational costs and losses during the period.
“A lot of it is infrastructure. A lot of damage happened during the years of militancy,” he further stated.
Nigeria and Libya are two African countries exempted from the OPEC oil cut deal as a result of the crisis in their oil and gas sector. However, relative peace in oil-producing regions of these countries has led to increase oil output. Therefore, prompting the decision to review JMMC stands on Nigeria and Libya.
In a communiqué issued at the end of the meeting, the JMMC welcomed the participation of Nigeria, Iraq and Libya. More so, all parties expressed their commitment to the output deal.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT